ASA Releases Comments on FINRA Rules to Facilitate Capital Formation

WASHINGTON – The American Securities Association (ASA) today released comments submitted to the Financial Industry Regulatory Authority (FINRA) outlining recommendations to modernize FINRA rules, guidance, and processes to facilitate capital formation.

"ASA has long supported initiatives that enhance capital formation for businesses of all sizes. We believe a balanced approach to regulation will foster economic growth, reduce barriers for businesses seeking access to public and private capital markets, and expand opportunities for investors," said ASA President and CEO Chris Iacovella.

Key Recommendations from ASA's Comments:

• Modernize research rules for discretionary managed accounts, market maker disclosure, and remote work flexibility for research analysts.

• Modernize FINRA research analyst communication rules during the IPO process.

• Revise current FINRA guidance and rules that are in direct conflict with the language of JOBS Act and make changes to its policies to align them with governing securities law.  

• FINRA should conduct a comprehensive economic impact and cost-benefit analysis on all of its rules before submitting them to the SEC. 

• Congress should subject FINRA to the Administrative Procedure Act and all of its conditions. But until that time, FINRA should voluntarily conform its regulatory actions to the APA.

Read ASA's full submission here. 

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.